“We think rates and currency markets have embarked on sizeable trends that will be sustained — taking the US dollar much lower and yield curves much steeper — after two years of swing trading within wide ranges,” the strategists wrote.
The US dollar will tumble to levels last seen during the Covid-19 pandemic by the middle of next year, hit by interest rate cuts and slowing growth, according to predictions by Morgan Stanley.
A popular gauge of the dollar will fall around 9% from current levels by around this time next year, strategists including Matthew Hornbach predicted in a May 31 note. That will exacerbate a recent decline in the greenback, as trade turmoil weighs on the currency.
